Health Savings Account

Video: Basic Health at a Glance (including information about the HSA) view full screen

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HSA Highlights

  • Active benefit-eligible employees enrolled in Basic Health may open an HSA
  • Used for eligible health care, dental, and vision expenses. Can be used with a dental/vision-only Limited Flexible Spending Account
  • Balances roll over each year and accrue interest, and account is kept by employee even if leaving UVA
  • Pre-tax contributions can be made by employees and employer up to the IRS annual limit, and for age 55 and older there is a catch-up limit of an additional $1,000. Annual deposit limits for pre-tax dollars: maximum $3,400 for single membership, maximum $6,750 for employee plus more than one
  • Contributions accepted beginning the month after the HSA bank opens; funds become available after deposit by third bank day after payday. (Employer and employee contributions will not be accepted until the month following the date the bank opens the HSA account)
  • Banking forms completed during initial Basic Health enrollment to allow employer/employee deposits (additional info may be required; you’ll be contacted and must act if this is the case)
  • Annual minimum employee contribution: $120
  • Salaried employees enrolled in Basic Health for the first time due to new benefits eligibility receive an annual HSA employer contribution
  • The employer contribution from UVA will be prorated for:
    • new hire enrollments and employees who are newly eligible for benefits
    • employees who have delays in opening their HSA accounts
  • UVA employer contributions based on a January 1st enrollment start date are $1,000 for employee only, and $1,500 for employee plus spouse/child(ren)/family
  • UVA employer contributions will not change for any employee who gains or loses a dependent in the same calendar year
  • UVA will not make retroactive changes to excess contributions or deductions

An employees is not eligible for the HSA benefit if any of the following is true

He or she is

  • a J-1 visa holder

  • enrolled in Medicare or Medicaid or is listed as a dependent on someone else’s tax return

He or she has

  • a balance in a healthcare Flexible Spending Account, or a spouse has a balance in a healthcare Flexible Spending Account. (You also are not eligible if your or your spouse has a balance during any part of a Flexible Spending Account Grace Period, or if the plan year for you or your spouse is not over)

  • received healthcare benefits from the Veterans Administration (TRICARE) within the last three months

  • a spouse or parent who is enrolled in a healthcare plan that provides the employee with benefits (including an HRA offered by an employer) before the employee has met the IRS minimum deductible for the year
  • already contributed the annual federally-set limit to another HSA, MSA, or HRA in the same calendar year

Chard Snyder